The most impactful releases of this week will fill the market with volatility and sharp movements. Be ready to take action!
GBP: more stimulus
GBP/USD has risen from 1.2940 to above 1.3000 in a strong bullish spike just now. That’s because the Bank of England expanded the quantitative easing beyond expectations. Specifically, the bong-buying program is increased by 150 billion pounds. The committee unanimously voted in favor of this measure with the strategic objective to keep the interest rate at 0.1%. The process of buying itself will take one year starting in January.
For the GBP, that’s definitely good news as the entire country is now in a partial lockdown, Brexit is moving slow, and the British economy is in an obvious slump.
In the meantime, the GBP keeps moving within a larger sideways channel between 1.2890 and 1.3070. The core of this channel is contained within narrower band 1.2940-1.3000 where 1.3000 is the key level – and the GBP has just stepped over it. Now, you may take the upside of the larger channel of 1.3070 as the primary target for bulls.
We prepared an outlook of major events of this week. Check it and be ready!
Here you'll find what awaits the market this week, from the CPI release to a possible gold plunge.
About 24% of global central banks intend to increase gold reserves in 2023. Rising inflation, geopolitical turmoil, and worries about interest rates are reasons to increase gold reserves.
Greetings to a brand new week full of events, economic releases and US debt frictions. We are here to tell you everything you need to know!
The US dollar index breaks one resistance after another. Read the report to learn the next target for the US dollar index!